Strong Year for Churchill's Racing, ADW Operations

Churchill Downs Inc. reported substantial gains in its racetrack operations and advance deposit wagering platform—TwinSpires.com—in 2018.

CDI reported its fourth quarter results and its results for 2018 after markets closed Feb. 27. The company reported adjusted earnings of $328.8 million, up 15% compared with 2017. And the company's racing operations and ADW contributed to those gains.

Behind a strong performance at Churchill Downs racetrack, the company's racing operations saw adjusted earnings improve 9.3% to $92.4 million in 2018. Net revenue improved 6.8% to $295.4 million.

"For the full year, net revenue increased $18.8 million driven by a $21 million increase at Churchill Downs primarily from a successful Kentucky Derby and Oaks Week performance," CDI reported. "Partially offsetting this increase were a $1.8 million decrease at Arlington primarily due to lower meet attendance as a result of inclement weather and a ($400,000) decrease from other sources."

The company said Churchill Downs racetrack enjoyed a $9.3 million improvement in adjusted earnings largely fueled by Derby Week which was partially offset by a $1.1 million decrease at Arlington International Racecourse and $300,000 from other sources.

The company's TwinSpires.com platform saw net revenue increase $34.8 million to $291.5 million, up 13.5% from 2017. CDI credited growth in handle at TwinSpires.com as the primary driver.

"For the full year 2018, net revenue increased $34.8 million primarily due to handle growth of 8.3%, which outpaced the U.S. Thoroughbred industry performance by five percentage points," CDI reported. "Adjusted (earnings) increased $8.4 million driven primarily by the increase in handle."